AI Policy Remains an Open Question at CES

Bloomberg

Watch AI Policy Remains an Open Question at CES - Bloomberg on Dailymotion

Transcript

00:00There was something in the China context which we didn't get to with Parma,

00:04which was a piece of recent news with President Xi reiterating, I would say,

00:11a long-stated goal of reunification with Taiwan.

00:15Now, the reason I want to start there, Jacob, is in your efforts with Paxilica,

00:20the scenario that everyone is trying to plan for,

00:25Taiwan and access to capacity in the semiconductor side,

00:29being shut off if that scenario were to unfold.

00:33Starting in 2026, could you just bring us your latest thinking on that, please?

00:37Absolutely. And it's great to join you guys here at CS in Las Vegas,

00:41which is such a great window into American innovation

00:44and innovation from a lot of Paxilica countries like South Korea and Japan.

00:49It's incredibly exciting that we're talking barely three weeks

00:53after the signing of this landmark declaration.

00:55Ultimately, let me put into context why this is so important

00:59and why so many people are talking about technology competition.

01:03Today, it's clear that if the 20th century ran on steel,

01:06the 21st century is increasingly running on silicon and compute.

01:11And we're already seeing in the United States a third of our GDP growth coming from AI

01:14and growth picking up and accelerating as productivity is starting to accelerate growth

01:20in sectors across the economy.

01:22So back in July, President Trump rolled out this landmark speech at an event I co-hosted

01:27with White House AI czar David Sachs called Winning the AI Race,

01:31where it was a landmark moment where he declared that the U.S. is set to win the AI race

01:38and that it is the official policy of the U.S. government to do whatever it takes.

01:42A few months later, I'm happy to report that at the State Department,

01:45we have adopted a strategy that breaks down this broad goal into three parts.

01:51We want to help the U.S. government win the AI race by leading in innovation,

01:55by gaining market share, and by securing our supply chains.

01:58So we launched Paxilica with a group of seven countries,

02:02and they are the most technologically advanced countries, including Japan, South Korea,

02:07which is home to Samsung, SK Hynix, Mitsubishi.

02:10And we are engaged in a lot of intensive talks to now transition to the implementation phase

02:16of Paxilica in 2026.

02:19A lot of your anxiety, and you've been at this for a very long time,

02:22trying to warn the United States and those in positions of power,

02:26and now in the power that you have yourself,

02:27that we shouldn't be so opposed to China in the way that we have been.

02:31Now, from a national security perspective,

02:32what do you think of the latest that maybe H200s go into China,

02:36that by this quarter, they might sign off for Alibaba, for BYD to be able to access NVIDIA's chips?

02:44So part of the goal of winning the supply chain means we need to expand market share.

02:49And sometimes there's a bit of a tension between innovation and diffusion,

02:53because when you diffuse technology, sometimes you're compromising a little bit on innovation

02:58because more people have access to that technology, which narrows your technological edge.

03:04Part of what we're doing by exporting our H200s is making sure that the world's developers

03:10are building on top of the American stack.

03:13And we want to ensure that American models actually stay ahead

03:17through these strategic bilateral deals in countries in the Gulf,

03:21like the UAE, Saudi Arabia, and a number of others that are on the way,

03:27but still too early to disclose here today,

03:29in order to make sure that our companies have by far the most compute capacity

03:33so that our LLMs stay ahead as well.

03:36Jacob, on that market share bucket,

03:39the concern that many in D.C. outlined to us is,

03:43if we don't export to the Gulf, China will.

03:47Is that the right way to think about it for America?

03:49I think it's an opportunity where there is nature abhors a vacuum.

03:55We have got to fill the vacuum while we can.

03:58We have the world's best technology and the world's know that.

04:02And ultimately, America has thrived when we allow our innovators

04:06to actually dominate market share.

04:09They did dominate.

04:10NVIDIA had 95% of the market.

04:12And now Jensen would say he has zero.

04:14And maybe he's being allowed to claw some back.

04:17Has not the horse bolted?

04:18Have we not already allowed CameraCon to grow and Huawei to grow?

04:22Are we really going to be able to clean back and have the stack of our own worldwide?

04:26And that's exactly why we launched Paxilica,

04:29to make sure that we have a sensible approach to exporting our best technologies

04:34while protecting our most sensitive technologies.

04:37We're having dual-track conversations with our partners.

04:40We want to protect our sensitive technologies,

04:42but we have got to have a path to gain market share.

04:45And I think everyone's on the same page.

04:47Everyone who joined Paxilica understands that the world's supply chains being concentrated

04:51in one country, no matter how you feel about that country,

04:55isn't too risky, is too brittle, and is ultimately a liability to the global economy.

05:00And that's why we started this economic security coalition

05:04with the world's most advanced technology companies and countries

05:08in order to make sure that we diversify those supply chains.

05:12Jacob, those companies are here at CES Las Vegas.

05:15What do you hope to achieve in the time that you have at CES?

05:19So part of what we're looking for our roadmap in 2026 is we want to focus on policy coordination.

05:26We want to expand membership of Paxilica, and we want to focus on infrastructure projects.

05:30The way that we view infrastructure is we want to focus on the arteries of supply chains

05:35through advanced logistics.

05:37We want to focus on the muscle might of industrial capacity,

05:41particularly with fabs, factories, and refineries.

05:45And we also want to focus on the fuel, particularly capital and energy.

05:50One of the things that's so interesting about talking with companies here

05:53is we can get to actually stress test a lot of these ideas with builders

05:58and with people who are the closest to these problems day to day.

06:01Jacob, this week has been extraordinary from a geopolitical perspective.

06:06And I want to just get your thoughts high level.

06:09Your view on Paxilica is that it's sort of peace through power.

06:13Is that how we should be interpreting what's occurred in Venezuela with Russian ships

06:19with what continues to occur worldwide right now?

06:23So I think at the end of the day, one of the takeaways of the events the last few weeks

06:28is very clear that the world needs to know that the Trump administration says what it means

06:34and means what it says.

06:35I think Secretary Rubio spoke very eloquently about where the U.S. stands

06:40and the Trump administration stands on Venezuela and other issues that have been in the news

06:45like Greenland.

06:46Ultimately, the biggest threat to international norms is the Western Hemisphere

06:53and the United States being asleep at the switch while we are encroached from the north through the Arctic

06:58and from the south through Latin America.

07:00Ultimately, Paxilica is an effort to pursue a very pragmatic approach

07:06by working with our closest technological partners to actually forge strategic investment deals

07:12and allow moving the needle in a way that actually benefits all of us.

07:16That is why this coalition is so diverse.

07:18It's very, very new.

07:19It's a completely new grouping of countries that includes players like Singapore, like Israel, the UAE,

07:25people who aren't used to being included in traditional legacy forms like the G20 and the G7.

07:30And yet these countries punch far above their weight,

07:33and we're very proud to partner with them.

Category

Transcript

Be the first to comment

Recommended